DBS: West Pharmaceutical Services Inc -Buy Target Price US$449.00

Burgeoning biologics market drives demand for packaging

• Leading global elastomer maker with estimated market share of around 23% 
• Elastomers are essential components to package biologics e.g. vial stoppers, syringe plungers 
• No. of biologics approved in the US surged by 70% in 2017-21 vs 2012-16, translating into higher demand for biologic packaging 
• Trading at FY22F PE of 38x which is 24% below its precovid high, with potential US regulatory changes as a catalyst, we initiate with BUY, TP US$449